Building together

HOW IT’S DONE Since 1998, our construction department works in the alcohol industry of Ukraine. A team of scientists and specialists developed and put into production development kits for distilleries with the capacity of 20, 30 and 60 m3/day. 1 plant was built and 17 were reconstructed in Ukraine. At the Institute of Food Biotechnology and Genomics of National Academy of Sciences of Ukraine, over the past 10 years, specialists of the design bureau executed projects of distilling plants, which were provided with engineering solutions, equipped and put into operation in Russia, Iran, and Latvia. Number of distilleries in Ukraine were refitted to produce bioethanol. Recently, design bureau is working on the implementation of bioethanol plants construction projects in Ukraine with a capacity of up to 100 thousand tons per year. We acquired an important experience on the creation of such facilities in Ukraine, taking into account specifics of legislation, the market of construction and engineering services, equipment. The obvious was that the first and very important stage of the project is the development of general concept of the enterprise together with the customer: the raw material used, the list of products, byproducts, consumable resources, emissions and discharges, the list of infrastructure facilities, and logistics. The correct choice of the construction site, project cost, profitability and prospects of development depends on the concept of the project. In the last 2 years due to the increased interest in the construction of large bioethanol plants with a capacity from 250 tpd and above, a number of foreign companies offer a complete plant for such enterprises in Ukraine. It differs significantly from domestic one by being ever larger. For example, the maximum diameter of alcohol columns produced by Ukrainian plants is 2 meters. The diameter of columns for imported bioethanol plant with a capacity of 300 tpd is 4 meters and more. The process of putting such equipment into production will take at least 2 years from the national machine builders, therefore faster (but not cheaper!) way is to order a “critical equipment” overseas. Other “non-critical” equipment can be manufactured in Ukraine or purchased by the customer himself, significantly (up to 30%) reducing the budgetary cost. The biggest problems that the customer may encounter is choosing an equipment and technology supplier company. Foreign companies operating in this market sell equipment only together with intelligent services (know-how, design solutions). Supplier often seeks to win the competition by declaring the relatively small cost of the object. He does not include expensive items to the list of equipment to “hang” them to the customer after the start of work. Besides, the supplier declares the liability only within the battery limits – area, boundaries of which is outlined within the process unit, the cost of which seems small. Some complex technological areas are taken out of the battery limits by the service provider, and the total cost of the object increases dramatically. Therefore, there is a need in professional and detailed analysis of the budget proposals by technologists, specialized in this industry for all ordering process units of the enterprise, a comparison and selection of the most profitable solutions. Negotiations with complete plant suppliers, conducted by specialists in this industry or with their direct participation, allow to achieve a significant reduction in the budgetary cost of the project. As a rule, it is possible to find more rational solutions than originally proposed. Only after choosing supplier firms of process units, concluding contracts for the supply of the main equipment, both imported and manufactured on the spot (30 to 60 positions), the conclusion of preliminary contracts for contract work, there is enough information to produce real project feasibility study (business plan). Later on, during the design, processing, configuration and installation of the equipment, lots of questions arise. It is very important that the detailed design and construction of the enterprise facilities is performed by separate independent firms. Engineering company should carry out general supervision over them, working for the customer’s interest. During the execution of construction and assembly works, the activities of the engineering company enters another phase – preparation of documentation to provide the operation of enterprise: development and approval of process regulations in the established order, technological instructions at the workplace, product specifications, norms of raw materials consumption and safety instructions, certification of production, etc. Without this part of documentary, various controlling and supervising authorities will not allow the company to exist peacefully.

STAGES OF CONSTRUCTION Generally, the work of engineering company is divided into three stages. 1. 2-4 months of pre-design works: – defining the general concept of the enterprise (Terms of Reference) – the structure of the enterprise (process units and facilities), capacity, production volume, consumption of resources (raw materials, energy and water supply), the volume of temporary storage of raw materials and product, terminals; – gathering information on the technical characteristics of imported and domestic equipment, prices, terms and conditions of delivery; – negotiations with complete plant supplier firms together with the customer. Receiving budget proposals; – analysis of the proposals and development of the most profitable solutions; – defining a list of equipment purchased in the domestic market and non-standard, manufactured according to drawings of engineering group at the enterprises of Ukraine (various containers, bunkers, silos, fermentation tanks, auxiliary equipment, etc.); – ordering imported complete plants (technological units); – ordering for the manufacture and supply of equipment by resident enterprises; – development of business plan (or feasibility study) of an enterprise based on the obtained information. 2. 4-6 months of designing: – development and coordination of design assignment with the customer; – the choice of general design engineer and contractors; – development of structural technology project of the enterprise (interconnection of individual process units and infrastructure facilities, general requirements). – developing the area development plan together with the general design engineer; – conclusion of contracts for the detailed design of the enterprise and specific infrastructure facilities design (boiler or thermoelectric plant, power supply facilities, water supply, sewerage, transportation, treatment facilities); – development and issuance of design assignments of construction projects based on the requirements for equipment placement; – maintaining the detailed design of buildings and facilities for individual process units, support services, infrastructure and the enterprise in general; – development of design documentation (drawings) for special and non-standard equipment – absorbers, special containers, variable pressure equipment, etc. 3. 10-18 months of completing, construction, installation and commissioning: – working with suppliers and manufacturers of equipment, maintenance of manufacture (amendments and additions according to local conditions, quality control) and completing; – certification of equipment; – concluding contracts for buildings and structures construction; – construction and assembly works maintenance; – development of standard technical documentation (development or adaptation of technical specifications, technological procedures, specifications for products, norms of consumption of raw and auxiliary materials), approving it in the established order; – volume determination of technochemical control of raw materials, auxiliary materials, production process, finished products, equipping raw and manufacturing laboratories; – selection and adaptation of control procedures in accordance with the European and domestic standards requirements; – maintaining incomplete equipment mounting (equipment that is not delivered complete by foreign companies and not mounted with the participation of experts); – maintenance of commissioning; – certification of production by ISO 9001-2000 international system standards; – maintenance of enterprise commissioning and driving up to the rated capacity; – training of personnel during installation, adjustment and commissioning of the enterprise; – maintaining operation of the enterprise for 3 months after commissioning. Foregoing list of works is performed by qualified academic staff and engineering staff of design office with serious practical experience in the alcohol industry, construction and reconstruction of alcohol industry enterprises, business relations with major world suppliers of large-scale equipment for ethanol plants.